Okay, I need people’s opinions. I’m not sure what to do. So let me know which is better:

1) Buy a used car with cash, and have the whole car paid off at once but also have to deal with maintenance costs, as well as things like high miles, an old car (8+ years), little things being wrong (ex, the cigarette lighter not working, or something else little like that).

-OR-

2) Buy a newer, nicer car, getting a car payment, and spending 3-5 years paying it off but being able to get a car that’s more reliable and going to last me longer.

Things to take into account: I am going to have to borrow money from my grandparents even if I pay cash, but that loan will be interest-free and no min. monthly payment, vs. a car payment that would have interest and a min. monthly payment. I can’t afford more than $150/month in car payments right now. If I didn’t have a payment, then I would use that money on maintenance costs – so if I DID have a payment, I wouldn’t have much left in my budget to use for car emergencies.

Is car insurance cheaper if the car is newer/less miles?